We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

You are subscribed to Kristian Kerr

You can manage you subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form. Please try again later.

Talking Points

Kiwi stuck between two trendlines

Possible double top setting up on daily chart

Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.

A quick glance at the NZD/USD daily chart will reveal that the exchange rate has been beholden to a set of trendlines over the past couple of weeks. On the upside, the line connecting the October and January highs is currently at .7700 and has proven to be strong resistance over the past couple of weeks on a closing basis. The lower trendline now just under .7600 connects the March and mid-April lows and has been a solid area of support these past few days. With these lines getting closer to each other each trading day we can only assume that a directional break of some sort is coming. Wednesday’s reversal occurred during a cycle turn window and the price action over the past few weeks has set up a pretty clear potential double top. All things considered this would seem to favor a downside resolution. A daily close under .7590 or a break of the double top trigger at .7540 should confirm that a move lower of some importance is underway. A daily settlement over .7700, on the other hand, would set the stage for a more important push higher in the Kiwi.

About your FOREX.com Demo Account

A demo account is intended to familiarize you with the tools and features of our trading platforms and to facilitate the testing of trading strategies in a risk-free environment. Results achieved on the demo account are hypothetical and no representation is made that any account will or is likely to achieve actual profits or losses similar to those achieved in the demo account. Conditions in the demo account cannot always reasonably reflect all of the market conditions that may affect pricing and execution in a live trading environment.